NEW DELHI: Oilmeal exports more than halved in May to 83,221 tonnes against 1,69,607 tonnes as high oilseed prices forced companies to cut down on production.
The overall export of oilmeals in the first two months of this fiscal was down 36 per cent at 265,859 tonnes (418,052 tonnes), according to data released by the Solvent Extractors’ Association of India on Friday.
Soyabean crushing has come down drastically due to sustained disparity and high prices in the domestic market, thanks to heavy speculation in the futures market, said BV Mehta, Executive Director, SEAI.
The high operational cost and lower realisation from oil and meal is affecting the industry at large and availability of edible oil for consumers, he added.
In spite of five per cent reward rate under new Exim Policy and rupee depreciation, the export of soyabean meal is at a historic low and touched just 18,017 tonnes (89,883 tonnes) in April and 14,046 tonnes (8,226 tonnes) in May.
Adding to industries woes, the domestic demand for oilmeal has plunged after the outbreak of bird flu in which lakhs of birds were culled by the government. This apart, the unusually hot weather in most parts of the country has killed lakhs of chickens across states.
Capacity utilisation at many oil mills has hit its lowest level and many plants have closed down due to the crisis, he said.
South Korea remained the largest buyer of oilmeal from India importing 179,569 tonnes (161,241 tonnes) consisting 87,275 tonnes of rapeseed meal and 92,294 tonnes of castor meal. It was followed by Iran and Thailand shipping in 9,050 tonnes (63,115 tonnes) and 11,391 tonnes (42,550 tonnes), respectively.
Shipments from the Mumbai and JNPT ports dipped 74 per cent to 14,250 tonnes, while that of Kandla was down 27 per cent to 204,844 tonnes. Exports through Kolkata and Mundra ports were also down.
